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Probe Missing $2.1bn, N3.1trn Of Subsidy Payments Or Face Legal Action, SERAP Tells Tinubu

Published

2 years ago

June 4, 2023

Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Ahmed Tinubu to “set up a presidential panel of enquiry to promptly probe the grim allegations that US$2.1 billion and N3.1 trillion public funds of oil revenues and budgeted as fuel subsidy payments are missing and unaccounted for between 2016 and 2019, as documented by the Auditor-General of the Federation.”

SERAP urged him to “name and shame anyone suspected to be responsible for the alleged widespread and systemic corruption in the use of oil revenues and the management of public funds budgeted as fuel subsidy, and to ensure their effective prosecution as well as the full recovery of any proceeds of crime.”

SERAP also urged him “to promptly, thoroughly, independently, transparently and effectively probe all fuel subsidy paid by successive governments since the return of democracy in 1999, and to use any recovered proceeds of crime as palliatives to address the impact of any subsidy removal on poor Nigerians.”

In the letter dated 3 June 2023 and signed by SERAP deputy director Kolawole Oluwadare, the organisation said: “There is a legitimate public interest in ensuring justice and accountability for these serious allegations. There will be no economic growth or sustainability without accountability for these human rights crimes.”

SERAP said: “Your government should urgently act to follow due process of law in any policy to remove fuel subsidy, ensure that suspected perpetrators of these crimes against Nigerians are brought to justice and full recovery of any missing public funds.”

SERAP also said, “Arbitrarily removing fuel subsidy without addressing outstanding accountability issues in the alleged mismanagement of oil revenues and fuel subsidy payments would amount to punishing poverty and further impoverishing the poor while letting high-profile officials and non-state actors get away with their crimes.”

The letter, read in part: “Any removal of fuel subsidy should not be used as a ploy to keep the poor in poverty while those who allegedly stole oil revenues and fuel subsidy payments keep their ill-gotten wealth.”

“Allegations of corruption in oil revenues and fuel subsidy payments suggest that the poor have rarely benefited from the use and management of the revenues and payments.”

“Poor and socio-economically vulnerable Nigerians should not be made to continue to pay the price for the stealing of the country’s oil wealth while state and non-state actors pocket public funds.”

“We would be grateful if the recommended measures are taken within 3 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall take all appropriate legal actions to compel your government to comply with our request in the public interest.”

“The proposed panel should be headed by a retired justice of the Supreme Court or Court of Appeal, and its members should include people with proven professional record, and of the highest integrity that can act impartially, independently, and transparently.”

“A comprehensive approach that prioritises accountability and full recovery of missing crude oil and public funds is required to address the problems of the implementation of fuel subsidy since 1999.”

“According to the audited reports between 2016 and 2019 by the Auditor General of the Federation (AGF), the Nigerian National Petroleum Corporation (NNPC) failed to remit N663,896,567,227.58 into the Federation Account. The Auditor-General fears that the money may be missing.”

“The NNPC also reportedly failed to account for the allocation of crude oil to refineries in 2019. 107,239,436.00 barrels of crude oil were lifted as domestic crude without any document. The Auditor-General fears that the crude valued at N55,891,009,960.63 may have been diverted.”

“The NNPC in 2019 also failed to remit N1,955,354,671,268.66 and N55,157,702,848.74 of generated revenues into the Federation Account, contrary to Section 162(1) of the Nigerian Constitution 1999 [as amended]. The Auditor-General fears that the money may have been diverted.”

“The NNPC also failed to account for N4,572,844,962.25 of ‘domestic gas receipts’, thereby ‘reducing the distributable revenue in the Federation account.’ The Auditor-General wants the money remitted.”

“The NNPC also in 2019 failed to account for 22,929.84 litres of PMS pumped from refineries and valued at N7,056,137,180.00. The Auditor-General fears that the PMS may have been diverted.”

“The NNPC also ‘illegally classified’ 239,800 barrels of crude oil valued at N5,498,045,220 as ‘crude oil losses.’ The Auditor-General fears that the crude oil may have been diverted.”

“The Department of Petroleum Resources (DPR) in 2019 also reportedly failed to remit US$1,278,364,595.49 in revenue to the Federation Account. The money was deducted by the NNPC from the Oil and Gas Royalty assessed by the DPR.”

“The DPR in 2019 also deducted N19,840,081.29 as ‘stamp duty’ payments from contractors and consultants but the DPR instantly paid back the money to the contractors and consultants instead of remitting it to the treasury.”

“The DPR in 2019 also paid N137,225,973.35 to contractors and consultants for various contracts and consultancies but failed to deduct stamp duty. The Auditor-General wants the money recovered.”

“The DPR also paid N11,856,088,271.92 as salaries for 2019 but failed to deduct N118,560,882.72 as contribution of 1% Industrial Training Fund (ITF). The DPR in 2019 also failed to transfer US$35,738,342.95 year balance. The Auditor-General wants the money recovered and remitted.”

“The DPR in 2018 also withdrew without any explanation US$759,387,755.10 from DPR Signature Bonus Account rather than paid the money into the Federation Account.”

“Subsidy records show that N443,940,559,974.80 was paid as total subsidy for 2016 but the money was not budgeted for. The payments were for outstanding Petroleum Support Fund (PSF) commitments for year 2015.”

“However, there was no payment in 2016. Only outstanding payments for previous years 2014 and 2015 and interest payments were made in 2016.”

“The Auditor-General fears that the oil marketers that received the subsidy payments may not have been ‘eligible to draw from the Petroleum Support Fund as the Petroleum Products Pricing and Regulatory Authority (PPPRA) failed to provide any document on the payments.’”

“N39,141,210,181.74 was also paid from the Federation Account in 2016 to different Oil Marketers in 26 transactions, being Payments of Interest and Foreign Exchange Differential on Subsidy but without any document.”

“The NNPC also made ‘zero profit’ and recorded ‘losses from its joint ventures in 2016. This is contrary to expectations that profits should be made from the joint ventures.’”

“The Ministry of Petroleum Resources, Abuja in 2016 paid N14,490,000.00 for the supply of 3 Nissan Almera Saloon vehicles 1.5 to the Ministry without proper documentation. The purchase of ‘the vehicles were made through direct procurement without competitive bidding by at least three companies, as required by Financial Regulations. There was no advertisement and bidding for this contract.’”

“Although ‘N12,442,500.00 was approved by the Bureau of Public Procurement for the vehicles, the Ministry made an overpayment of N2,047,500.00 to the car company.’”

“SERAP urges your government to prioritise getting to the bottom of these allegations and ensure accountability for these serious crimes against the Nigerian people.”

“Promptly investigating and naming and shaming suspected perpetrators and recovering any missing public funds would advance the right of Nigerians to restitution, compensation and guarantee of non-repetition.”

“Section 13 of the Nigerian Constitution imposes clear responsibility on your government to conform to, observe and apply the provisions of Chapter 2 of the constitution. Section 15(5) imposes the responsibility on your government to ‘abolish all corrupt practices and abuse of power.’”

“Under Section 16(1) of the Constitution, your government has a responsibility to ‘secure the maximum welfare, freedom and happiness of every citizen on the basis of social justice and equality of status and opportunity.’ Section 16(2) further provides that, ‘the material resources of the nation are harnessed and distributed as best as possible to serve the common good.’”

“The UN Convention against Corruption and the African Union Convention on Preventing and Combating Corruption to which Nigeria is a state party obligate your government to effectively prevent and investigate the plundering of the country’s wealth and natural resources and hold public officials and non-state actors to account for any violations.”

“Specifically, article 26 of the UN convention requires your government to ensure ‘effective, proportionate and dissuasive sanctions’ including criminal and non-criminal sanctions, in cases of grand corruption.”

“Article 26 complements the more general requirement of article 30, paragraph 1, that sanctions must take into account the gravity of the corruption allegations.”

VANGUARD

News

FCT Court Summons Dino Melaye For Non-payment Of Over N500m Tax

Published

3 hours ago

August 27, 2025

Editor

Former Senator representing Kogi West, Dino Melaye, has been summoned to the Federal Capital Territory Magistrate Court over alleged failure to pay his mandatory Personal Income Tax for 2023 and 2024.

The summons dated August 21, 2025, also included that an underpayment of taxes in 2020, 2021, and 2022 owed by Melaye requires him to appear before the Magistrate Court at Wuse Zone II, Abuja, on September 5, 2025.

According to the FCT Internal Revenue Service, Melaye only paid N85,000.08 in 2019, N100,000.08 in 2020, N120,000 in 2021, and N1,000,000 in 2022, despite declaring much higher annual incomes.

It revealed that, for instance, in 2022, he declared an annual income of over N6.5 million.

It was revealed that an administrative assessment for 2023 and 2024 was issued on May 23, 2025, but when Melaye failed to respond within 30 days, a notice of best judgment assessment was issued on June 23, 2025.

The notice outlined that Melaye’s total tax liabilities for 2023 and 2024 were assessed at N234,896,000.00 and N274,712,000.00, respectively.

The notice read, “Despite reminders and ample time provided, your non-compliance with Section 41 of the Act constitutes a breach of your obligations.

“Consequently, the Federal Capital Territory Internal Revenue Service (FCT-IRS) has, in accordance with Section 54(3) of the Personal Income Tax Act, proceeded to raise a Best of Judgment Assessment in respect of your tax liabilities for the years under review.

“Accordingly, your tax liability has been assessed in the sum of N234,896,000.00 and N274,712,000.00 for the period of 2023 and 2024, respectively. The computation and assessment are attached for your action.

“Please note that the Service has also identified income under declaration and under payment for the 2020, 2021 and 2022 years of assessment, during which payment of N1,000,000.00, N120,000.00 and N100,000.00 were made respectively. Notices of additional will be issued upon the conclusion of our review.

“Your are hereby informed that you have the right to object to this assessment within thirty (30) days from the date of receipt of this notice. Any objection must clearly state the grounds of your objection and be substantiated with relevant supporting documents.

“Failure to make payment or file objection within the stipulated period will result in the assessment being deemed final and conclusive, and recovery proceedings will be initiated without further notice,” the FCT-IRS said.

News

FG Shuts Illegal Gold Mining Site In Abuja

Published

3 hours ago

August 27, 2025

Editor

The Minister of Solid Minerals Development, Dele Alake, has directed mining marshals to seal an illegal gold mining site in Gwagwalada, Federal Capital Territory, to avert potential environmental hazards.

This was contained in a statement signed by the Special Assistant on Media to the Minister, Segun Tomori, on Wednesday.

This follows an earlier operation on August 16, 2025, which led to the recovery and sealing of another site around the District 2 Extension layout in Gwagwalada, where 16 suspects were arrested.

Authorities confirmed that the suspects will be prosecuted soon.

He said, “Following reports of illegal gold mining in the Gwagwalada area of the Federal Capital Territory, the Minister of Solid Minerals Development, Dele Alake, has directed the mining marshals to seal off the site to mitigate potential environmental hazards.”

Preliminary findings revealed that artisanal miners invaded the Gwagwalada area after a gold vein was accidentally discovered during the digging of a soakaway pit near a residential property.

The latest incident occurred on farmland behind CKC in Gwagwalada.

Upon receiving intelligence on renewed unlawful mining activity, “Alake promptly ordered the deployment of mining marshals to secure the site,” the statement read.

During an on-the-spot assessment on Wednesday, officials of the ministry led by the Director of Mines Inspectorate, represented by the Deputy Director, Sunday Okhuoya, “expressed satisfaction with the level of compliance with the minister’s directive, disclosing that relevant departments of the ministry have launched a thorough investigation to unravel the root of these incidents whilst recommending measures to prevent a recurrence.”

Commander of the Mining Marshals, Assistant Commandant of Corps John Onoja, confirmed that “his team has established 24-hour surveillance over both affected sites, pending the outcome of the Federal Government’s ongoing inquiry.”

Alake, cautioning residents to steer clear of the areas, reiterated the Federal Government’s resolve to eradicate illegal mining activities nationwide.

He also disclosed that the ministry was fast-tracking the deployment of satellite surveillance technology to monitor mining operations and strengthen enforcement capacity.

News

Ondo Bans Graduation Ceremonies In Primary, Junior Secondary Schools

Published

4 hours ago

August 27, 2025

Editor

The Ondo State Government has banned private schools from organising graduation ceremonies for pupils of nursery and primary schools, as well as students of Junior Secondary School in the state.

The state Commissioner for Education, Professor Igbekele Ajibefun, on Wednesday, said this was part of the decision of the state government to sanitize the education sector of the state.

According to the commissioner, other decisions included the prohibition of illegal and unregistered schools, the banning of graduation ceremonies for nursery schools and the re-accreditation of all private schools for quality assurance.

Ajibefun, who spoke with all proprietors and proprietresses of schools in the 18 local government areas, in Akure, the Ondo State Commissioner for Education, Science and Technology, Professor Igbekele Ajibefun, declared that the state government was poised to reposition the education sector and was taking deliberate steps to encourage and support private school owners through different policies.

The Commissioner said, “My interactions start with private school owners because the private sector plays a critical role as you are major stakeholders in the education business. It is more serious than any other business.

“It is obvious that things have gone bad in the education sector; there are urgent issues we need to address so that we can bring back the lost glory.

“The schools operating illegally in the state would be given a six-month grace period to get approval, and the state would review the conditions for school approval to make it easier.

“When you run an unapproved school, you are running an illegal business. This administration will not allow illegalities, and that is the reason we are reviewing it. In the next couple of weeks, the new conditions will be rolled out. All private schools operating in the state must meet minimum standards.

“We are also banning elaborate graduation ceremonies, especially for nursery and JSS classes in state.”

Ajibefun also stressed that the state would no longer tolerate schools organizing excursions without approval or clearance from the Ministry due to the state of security in the nation.

He advised private school owners to be circumspect on the issue of making extra lessons compulsory after normal classes.

On the reuse of textbooks, the government has banned the exploitation of parents through the purchase of new textbooks every year, stating that siblings of a particular pupil can continue to use the same textbook for a period of time.

The commissioner also mentioned that the process of digitizing all schools in the state was in progress, noting that all students in the state’s primary and secondary schools would soon be migrated to the digital platform of the Ministry of Education.